Growth is in the DNA

Best performing life sciences clusters will be those that truly respond to the needs and requirements of life sciences occupiers and deliver ecosystems that support the long-term growth of emerging branches of the sector. One such branch is genomics – arguably one of the hottest investment areas in UK life sciences at the moment, and one presenting huge growth potential that will translate into increased occupational demand. This article aims to provide an understanding of genomics, size the UK market opportunity, identify key clusters and articulate what these emerging occupiers will require from a real estate perspective.

What is Genomics?

The study of all of a person’s genes or DNA. DNA carries all our genetic information, it is found in nearly all our cells. Sequencing and analysing genomic information helps to better diagnose, treat and prevent disease.

A report from Deloitte outlined 5 elements to the genomics value chain:

1. Sampling (collecting and packaging samples)
2. Sequencing (decoding the genome)
3. Analysis ( the process to identify disease-causing variants)
4. Interpretation (taking analysed information and providing clinically useful interpretations and results)
5. Application (directly using genomic information to improve targeting of clinical services).

How big is the genomics market and what is its growth potential?

According to the UK Office for Life Sciences pure play genomics companies in the UK employ 2,700 people. This figure will not include larger enterprises who partially focus on genomics meaning that total employment will be significantly higher but is much harder to accurately quantify.

Beauhurst are tracking 146 UK high-growth life sciences companies that have genomics or DNA in their business description. The majority of these companies are at seed or venture stage with less than 50 employees. It is clear that this is a young but high-growth sector, and this will fuel initial requirements for incubator/accelerator space and thereafter crucial grow-on space.

Looking forward, the UK genomics sector is forecast to outgrow the global market with a CAGR of some 20%. This is due to:

• Technological advancements meaning that the cost and time to sequence a gene is reducing. In 2000 the sequencing of a genome cost over $1bn and took over ten years. Now it costs less than $1,000 and takes one day. Companies are racing to further reduce this cost.
• The UK Government recently launched an implementation plan to position the UK as the most advanced genomic healthcare system in the world. As part of this initiative, it has committed to sequencing one million whole genomes, alongside the establishment of a network of national genomic laboratory hubs. There is also a commitment to provide £37mn in funding for genomics projects and data-driven initiatives.
• Covid-19 has shone a spotlight on the UK’s global leadership in this particular field of life sciences, which in part benefits from the data-rich NHS partnering with academia and industry.
• There is a huge push towards personalised and preventative healthcare which will have genomics at its very heart.

These growth drivers are leading to significant commercial expansion with recent examples including:

• Global Gene Corp, creating 110 jobs in the UK, mostly based in the R&D centre at the Wellcome Genome Campus in Cambridge.
• Oxford Nanopore raising £195mn in new capital, thus valuing the company at £2.48bn.
• Touchlight Genetics announced plans to more than triple its manufacturing footprint following a £42mn fundraising round.

Who are the key genomics players and where are the clusters in the UK?

Looking at the UK’s high-growth genomics universe, there is a clear concentration of companies in Cambridge, Oxford and London. The next largest clusters are in Scotland, the Midlands and the North West. These clusters benefit from specialist knowledge, talent and facilities. An example of this is the Wellcome Genome Campus in Cambridge, which has the largest concentration of genomics scientists in the world.

It is also home to Genomics England’s sequencing centre, the Wellcome Sanger Institute, EMBL-European Bioinformatics Institute and the BioData Innovation Centre. Elsewhere, in Manchester QIAGEN and Health Innovation Manchester have partnered to develop a major global genomics campus. The investment will create 250 new jobs and support more than 1,000 jobs indirectly in the Manchester corridor.

Example high-growth companies

Congenica: Cambridge

Genomics: Oxford

Touchlight Genetics: London

Example incumbents with a UK presence.

QIAGEN: Manchester

Illumina: Cambridge

Synthetic Genomics: Cambridge

What are the factors to be considered when designing spaces for these emerging occupiers?

In line with the broader life sciences sector, occupiers in this space will be looking for 24-hour amenities to service the needs of scientists and data analysts who are doing highly concentrated work, flexible spaces to accommodate both current and future needs, as well as buildings that have outstanding ESG and wellbeing credentials alongside fast and reliable digital connectivity. Location increasingly matters as these occupiers gravitate towards developments that create, curate and cultivate a collaborative ecosystem that is connected to the public.

The activity being undertaken can make a big difference in terms of the type of facility required. Whether you are looking at a new build or refurbishment, it is therefore vital that the design brief is centred on a deep understanding of the activities taking place.

Manisha Kulkarni, Head of Science & Technology at Bulb Laboratories explains that occupiers engaged in the core activity of genome sequencing, for example generally require the following;

• Good floor to ceiling heights in order to accommodate rows of technical equipment or instruments.
• Good slab to slab height in order to accommodate rows of technical equipment and instrumentation and cope with significant building services installation.
• Suitable plant room space for the enhanced appropriate ventilation.
• Adequate circulation space as well as access for regular maintenance.
• Sample storage and disposal facilities.
• High ratio of dry lab space with a small space for wet activities for sampling and storage.
• Enhanced power and cooling requirements, with high level of resilience built in.
• Flexibility to respond to growth demands and evolving processes.
• Space for server rooms in order to process large data sets.

Whereas those occupiers engaged in sampling (collection and extraction) will require a higher proportion of wet lab space, such as PCR rooms. They will also require access or space to house specialist equipment such as ultra-low cold storage and autoclaves.